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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (1857)	5/29/2000 8:08:00 PM
From: Cosmo Daisey	Respond to of 2561

Huh? As an example of how this works I cut the following from EQR news release announcing dividend: CHICAGO, May 23 /PRNewswire/ -- Equity Residential Properties Trust (NYSE: EQR - news) today announced that its Board of Trustees declared second quarter 2000 dividends for the Trust's common and preferred shares of beneficial interest. The common share dividend of $0.76 per share will be paid on July 14, 2000 to shareholders of record on June 20, 2000. Note the record date is JUNE 20 and the payment date is JULY 14. The stock will trade without dividend on JULY 14 because it will be paid to the shareholder of record on JUNE 20 They don't pay the dividend on June 20 they pay it in July to the people who owned the stock on June 20 but the stock trades with dividend until July 14. If you own the stock on the record date and sell it before the payment date you are responsible to pay the dividend you receive to the person who bought your stock. The three business day rule is to settle payment with your broker and has nothing to do with dividends. Take a look at the purchase date on your broker statement and you should see the same date that the order was filled. Some day your broker may fix the computer glitch and require you to return the dividends you collected. Most stocks recover to where they were before the dividend within two months following the payout so a plan of action that includes holding the stocks a little longer to protect the dividend may be a useful strategy. Cosmo